What happens to my Lifetime ISA if I die?

Where the holder of a Lifetime ISA dies, their ISA will retain its tax benefits until the earlier of the completion of the administration of the estate, the third anniversary of the death or the closure of the account. The 25% government withdrawal charge doesn't apply after death, meaning its full value can be inherited, but it will be subject to inheritance tax.

It's important to remember that tax rules can change in the future, and that tax treatment depends on your personal circumstance.